Montana’s bid to diversify its public funds by investing in Bitcoin was decisively blocked on Friday when House Bill 429 failed to pass through the state’s House of Representatives. The bill, introduced earlier this month by Representative Curtis Schomer, proposed the creation of a special revenue account that would allocate up to $50 million for investments in cryptocurrencies, stablecoins, and precious metals.
Schomer argued that the initiative was designed to diversify Montana’s asset portfolio and offer the potential for higher returns compared to traditional bond investments. With Bitcoin boasting a market cap of $1.8 trillion—making it the only digital asset to meet the bill’s stringent criteria—it was positioned as the primary beneficiary of the proposed fund.
However, despite the bill’s promise of diversification and potential high returns, it faced strong resistance from lawmakers wary of the volatility and speculative nature of cryptocurrencies. In a 41-59 vote, the House rejected the proposal, with opponents expressing concerns over exposing taxpayer funds to the unpredictable swings of the crypto market.
Legislative Concerns
Opponents of the bill expressed apprehension about the volatility and speculative nature of cryptocurrencies. Representative Steven Kelly emphasized the responsibility to safeguard taxpayer funds, stating,
“It’s still taxpayer money, and we’re responsible for it, and we need to protect it.”
Similarly, Representative Bill Mercer voiced discomfort with granting the state’s investment board discretion over crypto assets, including non-fungible tokens.
The bill will now head to the Senate Rules Committee for additional examination and, if approved, will proceed to the House of Representatives for further scrutiny.
National Context
Montana has joined a growing list of U.S, aligning itself with North Dakota, Wyoming, and Pennsylvania in pushing back against the integration of cryptocurrencies into state financial portfolios.
While Montana has chosen to step back, the broader push for Bitcoin reserves is far from losing steam. Across the country, several states are moving faster than the federal government to explore crypto’s potential in public finance. According to data from Bitcoin Reserve Tracker, 19 state-level proposals are still pending, including in Arizona, Illinois, Kentucky, Maryland, Oklahoma, New Hampshire, and Texas. These states are actively considering legislation that would allow for the allocation of public funds into Bitcoin and other digital assets.
Utah, for example, is making significant strides with its Blockchain and Digital Innovation Amendments bill, which, if passed, would permit the state treasurer to allocate up to 5% of Utah’s public funds into digital assets. This approach reflects a growing interest among lawmakers in diversifying state reserves and taking advantage of crypto’s potential for high returns—despite the associated risks. Also, according to recent reports,, countries like Switzerland, Brazil, Japan, and Russia are also exploring the potential of adding Digital Assets like Bitcoin to their national reserve strategies.
Investment manager VanEck projects that if all 20 proposed bills across 18 states are enacted, it could result in over $23 billion flowing into Bitcoin, equating to approximately 247,000 bitcoins.
Quick Facts:
- Montana’s state’s House voted 41-59 against a bill proposing Bitcoin as a state reserve asset.
- Concerns centered on the volatility and speculative nature of cryptocurrencies.
- Other states like North Dakota, Wyoming, and Pennsylvania have also rejected similar proposals.
- If pending bills in 18 states pass, over $23 billion could be invested in Bitcoin.
